Venezuelan Constituent Assembly Approves Oil-Backed Cryptocurrency

Venezuela’s National Constituent Assembly has finally given the go-ahead to the country’s oil-backed cryptocurrency, El Petro, after the parliament declared it unconstitutional. According to a statement by Vice President Tareck El Assaimi, the decree will “ establish the basis for the management of these alternative mechanisms in financial and commercial activities.” The El Petro was first offered in pre-sale in February, and following the launch President Nicolas Maduro said proceeds had reached US$735 million. The actual sale of the cryptocurrency began a month later, and Maduro claims this has raised US$5 billion to date. There is no evidence of these proceeds yet. The cryptocurrency is backed by 5 billion barrels in oil reserves from the Ayacucho bloc 2 in the Orinoko belt. The Petro, which Venezuela touts as the first cryptocurrency issued by a country, is promoted as a means to “boost monetary sovereignty”, while many analysts think it […]